Ricardo A. Alvarez IHRC/FIU SHMPAT PDM1 SHMPAT Meeting July 21-22, 2003

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM2 To develop a process for prioritizing Florida projects to compete for PDM funding

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM3 To maximize the opportunities for Florida projects to qualify and be approved for PDM funding

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM4

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM5

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM6 Authority: Stafford Act s. 203 DMA of 2000 s. 102 Authority: Stafford Act s. 203 DMA of 2000 s. 102

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM7 Purpose: Assist communities in implementing hazard mitigation programs to reduce potential for damage to the public and to facilities BEFORE the next disaster. Purpose: Assist communities in implementing hazard mitigation programs to reduce potential for damage to the public and to facilities BEFORE the next disaster.

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM8 DEADLINE: September 2, 2003 PRIORITY 2003 NFIP Repetitive flood-loss FEDERAL SHARE $3.0 million maximum DEADLINE: September 2, 2003 PRIORITY 2003 NFIP Repetitive flood-loss FEDERAL SHARE $3.0 million maximum

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM9 COST SHARING 75% Federal 25% Applicant in-kind allowed MANAGEMENT COST 5% max. allowed BENEFIT-COST BCR of 1.0 or higher COST SHARING 75% Federal 25% Applicant in-kind allowed MANAGEMENT COST 5% max. allowed BENEFIT-COST BCR of 1.0 or higher

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM10 BENEFIT-COST Use FEMA Model OR Other methodology: * Consistent w/FEMA model * Pre-approved BENEFIT-COST Use FEMA Model OR Other methodology: * Consistent w/FEMA model * Pre-approved

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM11 B-C BENEFITS Damage to buildings / infrastructure Damage to contents Loss of function Degradation of function Loss of life / injury B-C BENEFITS Damage to buildings / infrastructure Damage to contents Loss of function Degradation of function Loss of life / injury

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM12 ELIGIBILITY: State agencies Tribal governments Local government Private non-profit (through local Govmnt) LMS Participant NFIP Participant ELIGIBILITY: State agencies Tribal governments Local government Private non-profit (through local Govmnt) LMS Participant NFIP Participant

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM13 ELIGIBILITY: Natural hazards Human hazards ELIGIBILITY: Natural hazards Human hazards

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM14 ELIGIBILITY: Property acquisition/relocation Structural retrofitting Non-structural retrofitting Minor structural hazard control Localized flood control ELIGIBILITY: Property acquisition/relocation Structural retrofitting Non-structural retrofitting Minor structural hazard control Localized flood control

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM15 APPLICATION: Submit to state (DEM) Four completed copies Supplemental Questions for National Ranking and Evaluation APPLICATION: Submit to state (DEM) Four completed copies Supplemental Questions for National Ranking and Evaluation

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM16 APPLICATION:  Use e-Grant System  e-Grant Helpdesk APPLICATION:  Use e-Grant System  e-Grant Helpdesk

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM17 PROJECT EVALUATION/SELECTION: 1. Application to State 2.State Ranking 3.National Ranking 4.National Evaluation 5.Selection and Award 6.Regional Office w/Applicants PROJECT EVALUATION/SELECTION: 1. Application to State 2.State Ranking 3.National Ranking 4.National Evaluation 5.Selection and Award 6.Regional Office w/Applicants

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM18 NATIONAL RANKING: Benefit-cost (51 %) State ranking (22 %) Community factors (10 %) State/Tribal Plan (5 %) Population benefiting (4 %) Small/Impoverished (4 %) Critical facilities (4 %) NATIONAL RANKING: Benefit-cost (51 %) State ranking (22 %) Community factors (10 %) State/Tribal Plan (5 %) Population benefiting (4 %) Small/Impoverished (4 %) Critical facilities (4 %)

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM19 NATIONAL EVALUATION: Feasibility methodology (15 %) Implementation schedule (14 %) Staff/resources (13 %) Consistency w/priority etc (11 %) Community initiatives (9 %) Critical facilities (8 %) Leverage/partnerships (7 %) Model for others (6 %) Financial/social benefits (5 %) Outreach activies pro hazmit (5 %) Innovation/creativity (4 %) National Ranking score (3 %) NATIONAL EVALUATION: Feasibility methodology (15 %) Implementation schedule (14 %) Staff/resources (13 %) Consistency w/priority etc (11 %) Community initiatives (9 %) Critical facilities (8 %) Leverage/partnerships (7 %) Model for others (6 %) Financial/social benefits (5 %) Outreach activies pro hazmit (5 %) Innovation/creativity (4 %) National Ranking score (3 %)

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM20 SUBAPPLICANT NFIP - LMS D.E.M. SHMPAT STATE RANKING NAT’L RANKING NAT’L EVALUATION SELECT’N / AWARD D.E.M./FEMA R4 SUBAPPLICANT

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM21 SUBAPPLICANT LMS D.E.M. REVIEW B-C EMPHASIS SHMPAT REVIEW STATE RANKING D.E.M. FEMA

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM22 1.SHMPAT Committee 2.DEM Review Process 3.Ranking Instrument 4.State Risk Assessment 5.Annual Probabilities by Area 6.State Enhanced Hazmit Plan 7.LMS Input 8.Mechanism for Decision 1.SHMPAT Committee 2.DEM Review Process 3.Ranking Instrument 4.State Risk Assessment 5.Annual Probabilities by Area 6.State Enhanced Hazmit Plan 7.LMS Input 8.Mechanism for Decision

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM23

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM24 From Arabic: az-zahr = the die; danger, risk, peril; chance, uncertainty, lack of predictability; expose to risk; to venture upon; source of danger A SOURCE OF DAMAGE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM25 From the Latin: damnum = damage, fine, harm + age < agere = to make; injury or harm than impairs value or usefulness; cost expense, charge ADVERSE CONSEQUENCES FROM THE IMPACT OF A HAZARD

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM26 From the Latin: vulnus = wound, vulnerare = to wound; susceptibility to being wounded or hurt, as by a weapon. EXPOSURE TO HAZARDS

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM27 From the Latin: mitigat < mitigare < mit = mild, soft, gentle + agere = to make DAMAGE REDUCTION

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM28 Process to assess the effectiveness of specific Hazmit measures

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM29 Hazard Mitigation Analysis Applying the Method Hazard Mitigation Analysis Applying the Method

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM30 Follow the Steps SELECT SUBJECT 3. SELECT HAZARD 5. ESTABLISH FREQUENCY 7. DAMAGE PER EVENT 2. ASSESS VULNERABILITY 4. SET MAGNITUDE SCALE 6. ESTABLISH BENCHMARK 8. ANNUAL DAMAGE BEFORE HAZMIT

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM31 Follow the Steps IDENTIFY HAZMIT ALTERNATIVES 11. ESTABLISH COST OF MEASURE 13. ASSESS EFFECTIVENESS 15. ANNUAL BENEFITS 10. SELECT MEASURE 12. USEFUL LIFE OF PROJECT 14. ANNUAL DAMAGE AFTER HAZMIT 16. DISCOUNT RATE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM32 Follow the Steps SET PRESENT VALUE FACTOR 19. REPEAT FOR OTHER MEASURES 21. REPEAT FOR OTHER HAZARDS 18. BENEFIT-COST RATIO 20. PREFERRED MEASURE 22. AGGREGATE BENEFIT-COST 23. DECIDE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM33 Select Hazard FROM VULNERABILITY ASSESSMENT * HAZARD ASSESSMENT START WITH MOST FREQUENT HAZARD

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM34 Hurricane CATEGORYCENTRAL PRESSURE WIND SPEED (mph) STORM SURGE (ft) T.S ≥ < 920> 155> 18

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM35 Establish Frequency FOR BUILDINGS OR FACILITIES USE SITE-SPECIFIC FOR CITIES, COUNTIES OR REGIONS OF A STATE OR COUNTRY USE REGIONAL

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM36 Hurricane FREQUENCY * HOW OFTEN? * HOW MANY YEARS BETWEEN HITS? *ANNUAL PROBABILITY *REGIONAL FREQUENCY *SITE-SPECIFIC FREQUENCY FREQUENCY * HOW OFTEN? * HOW MANY YEARS BETWEEN HITS? *ANNUAL PROBABILITY *REGIONAL FREQUENCY *SITE-SPECIFIC FREQUENCY

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM37 Hurricane - Frequency 50 – 75 NAUT. MILES REGIONAL

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM38 Hurricane - Frequency DIRECT HIT SITE SITE-SPECIFIC

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM39 Hurricane - Frequency CATEGORY75 MILE RADIUS50 MILE RADIUSSITE-SPECIFIC T.S FOR MIAMI-DADE IN YEARS

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM40 Hurricane - Frequency CATEGORY75 MILE RADIUS50 MILE RADIUSSITE-SPECIFIC T.S ANNUAL PROBABILITY FOR MIAMI-DADE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM41 Establish Benchmark A HURRICANE EVENT FOR WHICH YOU CAN ACTUALLY GO TO THE AFFECTED AREA TO OBSERVE THE DAMAGE OR INFORMATION ABOUT AN EVENT FROM THE HISTORICAL RECORD A HURRICANE EVENT FOR WHICH YOU CAN ACTUALLY GO TO THE AFFECTED AREA TO OBSERVE THE DAMAGE OR INFORMATION ABOUT AN EVENT FROM THE HISTORICAL RECORD

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM42 Determine Damage per Event 1 THE BENCHMARK NEEDS TO IDENTIFY THE CATEGORY OF HURRICANE AND THE DAMAGE ASSOCIATED WITH IT THIS BECOMES THE DAMAGE PER EVENT FOR THAT SPECIFIC CATEGORY THE BENCHMARK NEEDS TO IDENTIFY THE CATEGORY OF HURRICANE AND THE DAMAGE ASSOCIATED WITH IT THIS BECOMES THE DAMAGE PER EVENT FOR THAT SPECIFIC CATEGORY

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM43 Determine Damage per Event 2 FROM THE KNOWN BENCHMARK EXTRAPOLATE TO OTHER CATEGORIES OF HURRICANES AND ESTIMATE THE DAMAGE FOR EACH ONE OF THEM. DAMAGE WILL BE HICHER FOR HIGHER CATEGORIES AND VICEVERSA

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM44 Annualize Damages by Category of Hurricane THIS IS A FUNCTION OF THE DAMAGE PER EVENT AND THE ANNUAL PROBABILITY FOR EACH CATEGORY OF HURRICANE THIS CAN BE GIVEN AS A PERCENTAGE OF THE VALUE AT RISK OR AS A DOLLAR AMOUNT THIS IS A FUNCTION OF THE DAMAGE PER EVENT AND THE ANNUAL PROBABILITY FOR EACH CATEGORY OF HURRICANE THIS CAN BE GIVEN AS A PERCENTAGE OF THE VALUE AT RISK OR AS A DOLLAR AMOUNT

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM45 ANNUAL DAMAGE BEFORE HAZARD MITIGATION THIS IS EQUAL TO THE SUMMATORY OF ANNUAL DAMAGES, IN DOLLARS, FOR EACH CATEGORY OF HURRICANE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM46 IDENTIFY HAZARD MITIGATION ALTERNATIVES MUST BE RELATED TO SPECIFIC CAUSES OF DIRECT DAMAGE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM47 ESTABLISH COST FOR EACH MEASURE TAKE INTO ACCOUNT COST OF PERIODIC MAINTENANCE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM48 ASSESS THE EFFECTIVENESS OF EACH IDENTIFIED HAZARD MITIGATION ALTERNATIVE Technical, Structural, Logistical, Capability for damage-reduction by category of hurricane

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM49 Benefits of Hazmit THE BENEFITS OF A SPECIFIC HAZARD MITIGATION MEASURE ARE EQUAL TO THE ANNUALREDUCTION IN POTENTIAL DAMAGE, FROM THE IMPACT OF A HAZARD, OVER THE USEFUL LIFE OF THE PROJECT

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM50 ESTABLISH ANNUAL DAMAGE AFTER HAZARD MITIGATION ESTABLISH ANNUAL DAMAGE AFTER HAZARD MITIGATION

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM51 DETERMINE USEFUL LIFE OF PROJECT FOR EACH HAZARD MITIGATION MEASURE DETERMINE USEFUL LIFE OF PROJECT FOR EACH HAZARD MITIGATION MEASURE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM52 Benefits of Hazmit  BENEFITS ACCRUE OVER TIME DURING THE USEFUL LIFE OF THE PROJECT  TO BE COST-EFFECTIVE THE BENEFITS OF A HAZMIT MEASURE MUST BE EQUAL TO OR EXCEED ITS COST

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM53 Benefit-Cost Ratio BENEFIT-COST RATIO = BCR BENEFIT COST HAZMIT MEASURE IS COST-EFFECTIVE ≥ 1 IF

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM54 The Time-Value of Money TO COMPARE BENEFITS THAT ACCRUE OVER TIME TO A COST INCURRED TODAY WE MUST COMPARE THEM IN TERMS OF THEIR PRESENT VALUE HOW MUCH IS A BENEFIT TO BE RECEIVED IN THE FUTURE WORTH TODAY?

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM55 Present Value Factor THE PRESENT VALUE OF MONEY IS A FUNCTION OF: *TIME *DISCOUNT RATE A PRESENT VALUE FACTOR (PVF) IS USED TO COVERT ANNUAL BENEFITS TO PRESENT VALUE.

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM56 ESTABLISH DISCOUNT RATE TO BE USED FOR BENEFIT-COST ANALYSIS ESTABLISH DISCOUNT RATE TO BE USED FOR BENEFIT-COST ANALYSIS

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM57 PVF – Discrete Compounding – 7% discount rate – Equal Payment Series NPvfN N ,

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM58 Converting to Present Value IF ANNUAL BENEFITS ARE : $2,500 USEFUL LIFE OF PROJECT IS: 20 YRS ANNUAL DISCOUNT RATE IS : 7% FROM TABLE: PVF = PRESENT VALUE OF BENEFITS IS: B x PVF = $2500 x = $26,485 IF ANNUAL BENEFITS ARE : $2,500 USEFUL LIFE OF PROJECT IS: 20 YRS ANNUAL DISCOUNT RATE IS : 7% FROM TABLE: PVF = PRESENT VALUE OF BENEFITS IS: B x PVF = $2500 x = $26,485

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM59 CALCULATE BENEFIT-COST RATIO FOR EACH OF THE IDENTIFIED HAZARD MITIGATION MEASURES CALCULATE BENEFIT-COST RATIO FOR EACH OF THE IDENTIFIED HAZARD MITIGATION MEASURES

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM60 SELECT THE PREFERRED HAZARD MITIGATION MEASURE SELECT THE PREFERRED HAZARD MITIGATION MEASURE

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM61 REPEAT PROCESS FOR EACH OF THE IDENTIFIED HAZARDS FROM THE VULNERABILITY ASSESSMENT REPEAT PROCESS FOR EACH OF THE IDENTIFIED HAZARDS FROM THE VULNERABILITY ASSESSMENT

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM62 COMPUTE THE AGGREGATE BENEFIT-COST RATIO FOR ALL HAZARDS AND THE SELECTED PREFERRED HAZARD MITIGATION MEASURES COMPUTE THE AGGREGATE BENEFIT-COST RATIO FOR ALL HAZARDS AND THE SELECTED PREFERRED HAZARD MITIGATION MEASURES

Ricardo A. Alvarez IHRC/FIU SHMPAT PDM63 DECIDE